THE TICKER

Texas firms to refund soldiers' premiums

August 04, 2006|By Tribune staff

More than 9,000 Illinois service members are expected to receive total restitution of more than $1 million as part of a nationwide settlement reached with three Waco, Texas-based insurance companies, the office of Illinois Gov. Rod Blagojevich announced Thursday.

The companies allegedly targeted active military personnel, aggressively marketing death benefit products that duplicated what the military already offered, the state said.

The settlement, which also involved the Securities and Exchange Commission, the Justice Department, and regulators in Texas and Georgia, will refund a total of $10 million in premiums to 92,474 servicemen nationwide, the office said.

The soldiers often unwittingly agreed to allow the companies, American Amicable Life Insurance Co. of Texas, Pioneer American Insurance Co. and Pioneer Security Life Insurance Co., to deduct the premiums directly from their paychecks, the office said.

Anyone with questions should call the Illinois Insurance Hotline at 800-444-3338.